Is it better to Borrow Money to buy a Dearer Car or to just Buy a Cheap one and not Borrow?

Buying a new car is often very expensive. Although there are normally cheap cars available, many people choose to buy dearer ones and to borrow money in order to do so. There can be a trade off between buying a cheap car which may need expensive repairs and buying a more expensive car which could be more reliable but costs more because of the expense of borrowing money. It can be quite a difficult dilemma to sort out.

If you do not have very much money for a car, then your options will be buying a cheap car or borrowing for a dearer one that is if you can find a lender that will give you a loan. If a loan is an option for you then you need to think hard about whether it is the right thing to do.

It can be very difficult choosing a car and working out whether it is likely to be reliable, unless you have a lot of experience with cars. You will need to consider whether you think that it will need a lot of repairs in the bear future and if so, that means that it will cost you a lot of money and it may not be good value to buy it. If you are not good at knowing whether a car looks good, then it is possible to pay an inspector to examine the car for you. This can help you to get some peace of mind when you are buying it. It is worth noting that whether you are paying a lot or a little for a car, there is still a chance that it may need a lot of repairs. The cost is not always a way of telling hether it will be reliable or not.

To find out more about reliability it can be worth finding out more about brands of cars and how reliable they tend to be. Some cars have a reputation for being less reliable than others. The cost of the parts could also be a factor as they will be more expensive to repair if the parts are dearer and harder to come by. You should also take a look at the log book to see the service history as a car that has been well looked after is more likely to be more reliable.

Another factor can be who you buy the car from. If you buy it form an individual then you should be more cautious. A dealer has a reputation to maintain and so they will not want to rip you off if they think that you will let others know and lose business for them. They may also be able to offer you some sort of guarantee and you will be able to go back to them if things go wrong, which is not something that you could do if you buy form an individual.

If you are getting a car that has a higher chance of being reliable, then you are less likely to have to pay out for repairs. This means that taking out a loan is less risky because you will be less likely to have to pay for repairs and therefore be able to afford the loan. You will also get better value for money form the car that you buy and that could make it worth paying out more money from it and therefore taking the loan.

It can be a difficult decision and so you should do all of the cost calculations. Work out how much extra you will be paying for the car if you take out a loan and whether you think that it would be worth it compared to paying for a really cheap one. Also consider what you will be using the car for and that may make a difference. If you are using it for work, for example, then you will need it to be reliable enough to get you there and back each day. If you have a young family you will not want to risk breaking down while they are in the car. It is not an easy decision and a lot of factors need to be considered.

It can be worth talking it over with friends and family as well as calculating the potential costs of the various options that you have. Think hard about what risks you are willing to take and how much you will have to repay on a loan so that you know what your options are. Consider what your future might be like and what positive and negative effects the different options may have for you and then you will be able to make a well informed decision as to what will be the best for you and feel happy that you have made the right choice.

Can I get a Loan if I am Unemployed?

If you are out of work then you might think that it is impossible to borrow money. It can be very difficult, particularly for large loans because a lender will want to see that you have a good source of income in order to be able to have enough money to make the repayments. There are a few ways that you may be able to borrow money though.

Before you do borrow though, you need to think really hard about whether this is a sensible idea for you. You need to consider that you will have to make the repayments on the loan. They may seem reasonable now, but you will have to make them for the duration of the loan or else you will have to pay extra charges. You will have to be careful as well because if the base rate increases, then the interest rate on the loan is likely to go up and this will mean that each repayment will be higher. You will have to be able to find the money to be able to cope with paying for the extra payments. This can be difficult for anyone but if you do not have very much money coming in, it can be even more difficult and so it is worth thinking about how you would cope if this should happen. It is always wise to imagine the worst case scenario to see whether you would be able to cope in the future as well as considering the current time and whether you would be able to manage now.

If you apply for a loan and get rejected, it can be tempting to keep applying until you get accepted. However, this can have a negative effect as it will appear on your credit record and potential lenders will see that you are doing this and think that you are desperate for money, which could put them off lending to you. There are other things that you should do first before reapplying.

Firstly think about whether you are applying for the right type of loan. Consider how much money you want and then what types of loans are available to give you that money. You may find that there are more options than you knew about and this could mean that you will have different types of loans to consider. You may find that you will be more likely to be lent money for a credit card, for example than for a personal loan. Of course, you need to be sensible and make sure that you get a loan for just the amount of money that you need and only spend what you have to or else things could easily get out of control.

There are some short term loans where credit checks are not necessary and these tend to be the ones that most people are able to get even if they are unemployed or have a poor credit record. However, these can be extremely expensive and if you do not pay them back on time you can end up paying a lot more than you expected to.
It could be better to try to borrow money from friends and family. Although there can be problems with this as it can cause relationship problem if you do not pay it back when expected, it can be a lot cheaper and more flexible. Just be careful to choose carefully who you borrow from and make sure that you have a written agreement as to when the repayments will be made and how much they will be. If you want to pay them back extra by way of interest or they ask for extra, make sure that you agree this as well. As long as you stick to the agreement, there should be no reason for you to fall out over the loan and things should work out really well for everyone.

It can be hard to spend enough time thinking about borrowing money before doing so. You may be desperate and just want to get your hands on money as soon as possible and not think about the consequences of borrowing. Take time to consider whether you really need the money, look at all places that you can borrow from and make sure that you are confident that you will be able to manage the repayments before you borrow anything. Although it will be nice to be positive and assume that you will find a job soon. You never know whether the interest rates will go up and whether you will be able to make the repayments. If there is a risk that you will not be able to make the payments then it is worth trying to find an alternative way to manage without borrowing the money.

Can Young People Get Loans?

If you are young person then you may be concerned that you will not be able to borrow money. You may have heard about other young people being refused loans or you may just wonder whether you will be able to get one. You may have even tried and been turned down. It is worth considering before you apply as if you get turned down when you apply for a loan then this could be a negative towards your credit rating so you may be worried about this.

Firstly, it is wise to decide whether you really need a loan. If you have savings or can wait and save up for the things that you need then this could be the best way to do things. It will be a lot cheaper anyway and you will not need to think about whether you can get a loan or not.

The type of loan that you are applying for could determine whether your age will have an effect or not. It is likely that this will depend on the type of loan that you are applying for. Some lenders will be interested in your income and will want to see that you are in permanent employment and have been for some time. This will show that you have a regular income and have the means to make regular loan repayments. This will be more necessary for the larger value loans and mortgages but is still important anyway as if you apply for a loan you will need to make sure that you will be able to pay it back. If you are younger you are more likely to be in a lower income job and therefore this could be a reason for you being turned down for some loans.

Many lenders will also take a look at your credit record. This is often not so good when you are younger, just because you have never borrowed money or had to make regular payments. Having had a loan and paid it back will show that you are capable of doing so and therefore you are more likely to be considered for another.

However, if you have borrowed money and not paid it back on time then this will have the reverse effect and work against you. As many younger people have not borrowed money then other things will be considered. This could be paying of bills, such as a mobile phone, utilities etc. If you have always paid on time this will work in your favour; if you have missed payments, then this will work against you. Having some records showing that you are capable of paying bills, will really work in your favour. This means that if you keep on top of paying for everything, then this can help you to improve your credit rating and therefore be more likely to be leant money.

Some people try things to make their credit record better. It can be worth taking a look at your credit record, to see what it shows and whether it is correct. You can do this free of charge and it is important to make sure that information on it is accurate and therefore shows you in a good light. If anything is incorrect, make sure that you get it changed so that you have a better record. If you have not many things on it, then you may want to try to improve it. There are some lenders that try to encourage you to get loans so that you improve it, but these are often very expenisve. You may be able to find other ways to improve it, such as having your name on a bill that is paid regularly or getting a credit card that you pay off in full each month. You do need to be careful though. As if you take on debt in order to improve you record, it may not only take time to have an effect, it could also lead you to overspending and paying out a lot in costs. It may not be worth it, so think it through really hard before you try anything.

So often age is not a specific problem when it comes to borrowing, but there are other factors that might influence a lender which could be indirectly related to your age. A lender will want to see that you have a good income and a steady job so that you have the means available to repay any money that they lend to you. They will also be interested in your credit record. Therefore if you can show that you are capable of making bill payments on time and any other regular payments that you have to make, it will show that you are capable of repaying other loans as well.